An Almost Ideal Demand System (AIDS) for Forest and Agricultural Land Demand in Nigeria

Nigerian land use demand model was estimated using the AIDS model. Results showed that restricted method of estimation gives a better result than the unrestricted considering the significance of hectarage elasticities. The assumption of homogeneity was violated by the unrestricted method of estimation. Both the restricted and unrestricted methods of AIDS model estimation comply with the assumption of adding up, although, both violate the symmetry assumption. Increase in national income will lead to increase in the total hectare demanded in all the land use classes. Substitution or price effect is stronger as a factor influencing demand for all the land use classes. Permanent cropland and arable land show complementary relationship from the cross price elasticity. Arable land and permanent pasture show complementary relationship. Forest and woodland versus permanent crops are substitutes.